Sales, marketing and support services group DCC has agreed a deal to acquire a liquid petroleum gas distributor in the US valued at $200m.
Retail West is owned by NGL Energy Partners and has its headquarters in Illinois. It sells 130,000 tonnes of liquid petroleum gas each year across the US.
DCC said the transaction is expected to complete in March next year.
The deal is DCC's first foray into the LPG market in the US.
It noted that the US is one of the world's largest LPG markets and is an "attractive and growing market". It is also highly fragmented, with over 4,000 LPG distribution businesses operating in the market.
"The acquisition of Retail West will provide DCC with a substantial, high-quality presence in the US with leading market positions in a number of states," the company said.
"The business has an excellent customer base, a strong and well-invested operational infrastructure and an experienced management team," it added.
DCC's chief executive Donal Murphy said the deal for Retail West is consistent with the company's ambition to build a substantial presence in the global LPG market.
"Our LPG business has grown significantly in recent years and Retail West will give DCC a material platform for development in the large, fragmented and growing LPG market in the US," he added.
